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FLS vs. EPOKY: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Flowserve (FLS - Free Report) or Epiroc Aktiebolag Unsponsored ADR (EPOKY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Flowserve and Epiroc Aktiebolag Unsponsored ADR are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

FLS currently has a forward P/E ratio of 20.11, while EPOKY has a forward P/E of 30.46. We also note that FLS has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EPOKY currently has a PEG ratio of 9.67.

Another notable valuation metric for FLS is its P/B ratio of 2.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EPOKY has a P/B of 8.76.

These are just a few of the metrics contributing to FLS's Value grade of B and EPOKY's Value grade of F.

Both FLS and EPOKY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FLS is the superior value option right now.


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Flowserve Corporation (FLS) - free report >>

Epiroc Aktiebolag Unsponsored ADR (EPOKY) - free report >>

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